This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has fined Allergan Inc. $15-million for failing to make full disclosure of takeover talks the company was having during a key period in 2014. (All figures are in U.S. dollars.) The talks were aimed in part at thwarting a bid from Quebec's Valeant Pharmaceuticals Inc. The SEC claims that Allergan only made vague disclosure of its dealings, and that disclosure was inaccurate.

The fine comes as a footnote to a failed attempt by Valeant to acquire Botox-maker Allergan in 2014. In a months-long effort, Valeant and its backers made cash-and-share offers valued as high as $53.3-billion for Allergan. The effort was ultimately unsuccessful, as Allergan eventually agreed to a completing offer from Actavis PLC.

The problem with these events, as described by the SEC, was that Allergan disclosed very little of its talks with Actavis and nothing of its talks with another company. This left investors with a lack of proper information. The regulator says that the disclosure failures occurred despite more than one reminder from SEC staff.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS